Directory enquiries firm 118 118 moves into consumer finance

The company may be better known for its television adverts featuring two
hapless, moustached men in 1970’s running kit. But 118 118, the
directory enquiries service, is to attempt to become known for something
else entirely, as it takes its first foot steps into the world of consumer
finance.

118118Money.com is to launch tomorrow , offering consumers loans of £1-5,000 for a period of between 12 to 24 months on an annualised percentage rate of 35.9pc.

By James Quinn, Financial Editor

9:30PM BST 29 Sep 2013

The company behind 118 118 is to launch a basic personal loan product aimed at consumers who cannot necessarily get credit from high street banks.

Although not directly competing with pay day lenders such as Wonga - the loans will be available for much lower interest rates and for longer time periods - the new loans will be aimed at those who have trouble filling in bank forms and meeting minimum loan requirements.

118118Money.com is to launch tomorrow , offering consumers loans of £1-5,000 for a period of between 12 to 24 months on an annualised percentage rate of 35.9pc. It will also offer 'second chance loans’ at an APR of 79.9pc for those whose credit is seriously impaired. As well as using credit scoring to assess applicants, the company will demand borrowers are able to repay a minimum of £57 a week.

The new product is the brainchild of Mark Mayhew, a non-executive director of 118 118, and former NatWest banker who was once chief operating officer of its cards and e-ventures business.

“Many years after the credit crunch, it is still hard for some consumers to borrow,” said Mr Mayhew.

He said that the APR would signal that the target customer is not super prime, nor sub-prime, but 'middle of the road’ consumers who needed to borrow relatively small sums.

118 118 is owned by The Number UK, which in turn is owned by kgb - formerly Knowledge Generation Bureau.

kgb is a privately owned US-based digital information company whose investee companies provide film listings train schedules, price comparisons and “Ask Us Anything” service across various platforms, including phones, texts and the internet.

As well as 118 118, its other brands include 118 218 Le Numero, France’s number one directory assistance service, and kgbdeals, a discount website designed to give users daily deals.

The business will operate under a consumer credit licence obtained from the Office of Fair Trading, and next year will transfer to be regulated by the Financial Conduct Authority as part of regulatory changes to the way the consumer finance industry is governed.